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Outsourcing is Out: Here’s What Companies Are Doing Instead

a group of HR experts discussing talent management strategies

Nick Broughton

By Nick Broughton, Partner, GoGlobal 

Is the legacy outsourcing model that companies have depended on for decades on its way out? 

What was once hailed as a practical solution for tapping into cost-effective talent and expertise around the world is now showing cracks and limitations. Recent news headlines shed light on questionable outsourcing practices within the technology industry, particularly among major corporations. These practices raise concerns regarding compliance with labor laws and ethical standards. Consequently, there is increased public attention and potential reputational damage. 

A paradigm shift is underway as businesses around the world grapple with the challenges of outsourcing, including the loss of creative control, upholding compliance and maintaining quality. We’re entering a new era where innovative cross-border HR solutions come together to redefine how organizations build their teams.  

In this blog post, we shed light on how a combination of specialized recruitment and Employer of Record (EOR) solutions can help companies futureproof their talent management strategies.  

A new era of global talent integration

Amid the shortcomings of the legacy outsourcing model lies a distinct opportunity for innovation. 

Forward-thinking organizations are redefining talent acquisition and management by combining expert recruitment with Employer of Record (EOR) and other hiring solutions. Global talent integration, supported by end-to-end cross-border HR solutions, presents a holistic model that seamlessly merges specialized recruitment with compliant and efficient employment processes. 

This approach allows companies to transcend the limitations of outdated outsourcing models and enjoy the best of both worlds. By collaborating with cross-border HR solutions providers, companies gain access to a vast pool of specialized but cost-effective talent from around the world – all while ensuring regulatory compliance and retaining control over their workforce. 

Here’s how successful companies are transitioning away from outsourcing and embracing a holistic global talent integration model: 

  • Local Knowledge and Relationships: By partnering with cross-border HR solutions providers, companies gain access to local expertise and established relationships in target countries, facilitating smoother recruitment processes and integration into local business environments. 
  • Remote Work Expertise: This model represents the cutting edge of remote work, leveraging specialized expertise in managing remote teams and digital nomads. With a specialized cross-border HR partner by their side, companies can streamline processes and optimize productivity. 
  • Regulatory Compliance Assurance: EOR services provided by cross-border HR solution providers safeguard companies against corporate risks by serving as the legal employer. The EOR can process payroll, administer benefits and handle reporting requirements. Companies gain peace of mind and the freedom to focus on core business, without being weighed down by compliance complexities.  
  • No Entity, No Problem: Companies can expand their global footprint without the overhead and complexities of establishing legal entities in multiple countries. This empowers agile and cost-effective international growth plans.  
  • Restoring Traditional Employer-Employee Relationships: This collaborative model empowers companies to regain control over workflows, fostering stronger relationships and alignment with company culture and objectives. 
  • Local Cultural Expertise: Cross-border HR solutions providers offer expertise in navigating local cultures, including language proficiency and understanding of business customs. This element is essential for effective communication and collaboration in global teams. 
  • Cohesive Team Dynamics: Remote teams integrated through this model become seamless extensions of the core team, enabling cohesive collaboration. An EOR can even provide supplemental benefits, such as equity compensation. 
  • Sustainable Talent Management: With end-to-end support from recruitment to onboarding to offboarding, this model promotes a sustainable talent management strategy across a company’s lifecycle. For example, an EOR can help bolster M&A transactions. Some EOR partners even offer Agent of Record (AOR) solutions, allowing companies to engage independent contractors when appropriate. This breadth of solutions enhances flexibility and scalability in talent management. 

The global talent integration model not only addresses the challenges of talent acquisition in a globalized world but also paves the way for sustainable growth and success.  

By embracing comprehensive HR solutions, companies can futureproof their talent management strategy and stay far ahead of the pack in the worldwide race for talent.  

Contact us to learn more about how our one-of-a-kind Recruit & Hire solution can help you update your talent management strategy and access new talent pools around the world.